Here we go - a jailbreak method that works on Paperwhite devices with Firmware versions 5.2.0, 5.3.0, 5.3.1, 5.3.4, and 5.3.5.

UPDATE 2013-03-19: Please make sure that you are using the latest version of the rescue pack! Standalone versions installed before 2013-03-13, and jailbreaks performed before 2013-03-19, contain a rather serious bug in the rescue pack. If in doubt, re-install the rescue pack (see below for a link), or the jailbreak.

FIRMWARE 5.3.3 and 5.3.6 or later:
This jailbreak cannot be installed on firmware 5.3.3 or any version >= 5.3.6.
Downgrade to an older version (e.g., 5.3.1, or any other supported version) first, install the jailbreak there, then update again to the desired version. The jailbreak as such will survive the update (but you have to reinstall the Kindlet developer certificates and the rescue pack - see the "re-installation required" notes below). Downgrading works exactly like upgrading. Put the update_*.bin on the Kindle, and use Menu > Settings, Menu > Update Your Kindle.

Thanks to youtube user Hunyadi Zsolt, here is a video of the jailbreak installer in action:

Just download the zip file, extract it and follow the instructions in the README.txt.

By default, the following "components" are installed:

• The actual device jailbreak, i.e., the certificate which allows to install custom update packages.
• The Jailbreak Bridge.
• The Kindlet developer certificates. (standalone installer package here - re-installation possibly required after firmware update.)
• The Rescue Pack. (re-installation required after firmware update - INSTALL IT! One day, it might save your Kindle...).

You can disable individual components by editing the jailbreak.sh file, but this isn't recommended. After all, there is a very good reason for installing every single one of the components, so I recommend to just stick to the defaults.

It is safe to re-apply the procedure as many times as you want - for instance, if you happen to unregister your device, the developer certificates will be deleted. You can simply re-apply the jailbreak to get them back (only on supported firmwares though).

While it is not recommended to remove the jailbreak - after all, it also allows you to debrick the device - , instructions for doing so can be found here.

PS: And here is another, completely unrelated and off-topic, video:

The three laws of Robotics:
1) A robot may not injure a human being or, through inaction, allow a human being to come to harm
2) A robot must obey orders given to it by human beings except where such orders would conflict with the First Law.
3) A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.

With these three, simple directives, Isaac Asimov changed our perception of robots forever when he formulated the laws governing their behavior. In I, Robot, Asimov chronicles the development of the robot through a series of interlinked stories: from its primitive origins in the present to its ultimate perfection in the not-so-distant future—a future in which humanity itself may be rendered obsolete.

Here are stories of robots gone mad, of mind-read robots, and robots with a sense of humor. Of robot politicians, and robots who secretly run the world—all told with the dramatic blend of science fact and science fiction that has become Asmiov's trademark.

Set against the bleak winter landscape of New England, Ethan Frome tells the story of a poor farmer, lonely and downtrodden, his wife Zeena, and her cousin, the enchanting Mattie Silver. In the playing out of this short novel's powerful and engrossing drama, Edith Wharton constructed her least characteristic and most celebrated book. In its unyielding and shocking pessimism, its bleak demonstration of tragic waste, it is a masterpiece of psychological and emotional realism.

(1911 Pulitzer).

From Wikipedia:
The Good Earth is a novel by Pearl S. Buck published in 1931 and awarded the Pulitzer Prize for the Novel in 1932. The best-selling novel in the United States in both 1931 and 1932, it was an influential factor in Buck's winning the Nobel Prize for Literature in 1938. It is the first book in a trilogy that includes Sons (1932) and A House Divided (1935).
The novel of family life in a Chinese village before World War II has been a steady favorite ever since. In 2004, the book was returned to the bestseller list when chosen by the television host Oprah Winfrey for Oprah's Book Club. The novel helped prepare Americans of the 1930s to consider Chinese as allies in the coming war with Japan.
A Broadway stage adaptation was produced by the Theatre Guild in 1932, written by the father and son playwriting team of Owen and Donald Davis, but it was poorly received by the critics, and ran only 56 performances. However, the 1937 film, The Good Earth, which was based on the stage version, was more successful.

From Wikipedia: "Crime and Punishment focuses on the mental anguish and moral dilemmas of Rodion Romanovich Raskolnikov, an impoverished St. Petersburg student who formulates and executes a plan to kill a hated, unscrupulous pawnbroker for her money, thereby solving his financial problems and at the same time, he argues, ridding the world of evil. Written at fever-heat, Crime and Punishment is considered by many as the first of Dostoevsky's cycle of great novels, which would culminate with his last completed work, The Brothers Karamazov, shortly before his death."

From "Wikipedia":

"Quo Vadis: A Narrative of the Time of Nero", commonly known as "Quo Vadis", is a historical novel written by Henryk Sienkiewicz. Quo vadis is Latin for "Where are you going?" and alludes to a New Testament verse (John 13:36). The verse, in the King James Version, reads as follows,

"Simon Peter said unto him, Lord, whither goest thou? Jesus answered him, Whither I go, thou can not follow me now; but thou shalt follow me afterwards."

Quo Vadis tells of a love that develops between a young Christian woman, Ligia (or Lygia), and Marcus Vinicius, a Roman patrician. It takes place in the city of Rome under the rule of emperor Nero around AD 64.

Sienkiewicz studied the Roman Empire extensively prior to writing the novel, with the aim of getting historical details correct. As such, several historical figures appear in the book. As a whole, the novel carries a powerful pro-Christian message.

Published in installments in three Polish dailies in 1895, it came out in book form in 1896 and has since been translated into more than 50 languages. This novel contributed to Sienkiewicz's Nobel Prize for literature in 1905.

Several movies have been based on Quo Vadis. The most famous movie is the Hollywood production "Quo Vadis" filmed in 1951.

The three laws of Robotics:
1) A robot may not injure a human being or, through inaction, allow a human being to come to harm
2) A robot must obey orders given to it by human beings except where such orders would conflict with the First Law.
3) A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.

With these three, simple directives, Isaac Asimov changed our perception of robots forever when he formulated the laws governing their behavior. In I, Robot, Asimov chronicles the development of the robot through a series of interlinked stories: from its primitive origins in the present to its ultimate perfection in the not-so-distant future—a future in which humanity itself may be rendered obsolete.

Here are stories of robots gone mad, of mind-read robots, and robots with a sense of humor. Of robot politicians, and robots who secretly run the world—all told with the dramatic blend of science fact and science fiction that has become Asmiov's trademark.

Set against the bleak winter landscape of New England, Ethan Frome tells the story of a poor farmer, lonely and downtrodden, his wife Zeena, and her cousin, the enchanting Mattie Silver. In the playing out of this short novel's powerful and engrossing drama, Edith Wharton constructed her least characteristic and most celebrated book. In its unyielding and shocking pessimism, its bleak demonstration of tragic waste, it is a masterpiece of psychological and emotional realism.

(1911 Pulitzer).

From Goodreads: Winner of the 1933 Femina Vie Heureuse Prize, COLD COMFORT FARM is a wickedly funny portrait of British rural life in the 1930s. Flora Poste, a recently orphaned socialite, moves in with her country relatives, the gloomy Starkadders of Cold Comfort Farm, and becomes enmeshed in a web of violent emotions, despair, and scheming, until Flora manages to set things right.

It has a wonderful theme of family and charity, making it a good read for the holiday season.

From Amazon:

Muriel Spark’s timeless classic about a controversial teacher who deeply marks the lives of a select group of students in the years leading up to World War II

“Give me a girl at an impressionable age, and she is mine for life!” So asserts Jean Brodie, a magnetic, dubious, and sometimes comic teacher at the conservative Marcia Blaine School for Girls in Edinburgh. Brodie selects six favorite pupils to mold—and she doesn’t stop with just their intellectual lives. She has a plan for them all, including how they will live, whom they will love, and what sacrifices they will make to uphold her ideals. When the girls reach adulthood and begin to find their own destinies, Jean Brodie’s indelible imprint is a gift to some, and a curse to others.

The Prime of Miss Jean Brodie is Spark’s masterpiece, a novel that offers one of twentieth-century English literature’s most iconic and complex characters—a woman at once admirable and sinister, benevolent and conniving.

This ebook features an illustrated biography of Muriel Spark including rare photos and never-before-seen documents from the author’s archive at the National Library of Scotland.

Also:

"A perfect book." - Chicago Tribune

A short classic novel about an eccentric Edinburgh teacher who inspires cultlike reverence in her young students.

At the staid Marcia Blaine School for Girls, in Edinburgh, Scotland, teacher extraordinaire Miss Jean Brodie is unmistakably, and outspokenly, in her prime. She is passionate in the application of her unorthodox teaching methods, in her attraction to the married art master, Teddy Lloyd, in her affair with the bachelor music master, Gordon Lowther, and—most important—in her dedication to "her girls," the students she selects to be her crème de la crème. Fanatically devoted, each member of the Brodie set—Eunice, Jenny, Mary, Monica, Rose, and Sandy—is "famous for something," and Miss Brodie strives to bring out the best in each one. Determined to instill in them independence, passion, and ambition, Miss Brodie advises her girls, "Safety does not come first. Goodness, Truth, and Beauty come first. Follow me."

And they do. But one of them will betray her.

It is a quasi-biography of Elizabeth Barrett Browning, written from the perspective of her cocker-spaniel! Looking at the world with bewildered eyes, he never quite understands what is happening to him. I am not a fan of dogs, usually, but this story broke my heart. Being a much easier read than some of her other writings, it serves a great introduction to Virginia Woolf. I have only read this in a translation so far, so I’d like to give the original a try.

From Amazon:
Left penniless after his feckless father's death, young Nicholas Nickleby has no choice but to make his own way in the world. For the sake of his mother and sister, he is forced by his hard-hearted uncle to take a post as an assistant master at Dotheboys Hall, a school for unwanted boys, run by the cruel and tyrannical headmaster, Wackford Squeers. But this is only the beginning of Nicholas's adventures in this most entertaining of Charles Dickens's novels. We follow the progress of Nicholas and his slow-witted companion Smike on their travels and encounter a supporting cast of delectable characters including the rambunctious Crummles theatre company and their talented performing pony, the dastardly Sir Mulberry Hawk, the delightful Mrs. Nickleby, the preposterous Kenwings, and many more. Like many of Dickens's novels, Nicholas Nickleby is characterized by his criticism of cruelty and social injustice, but is above all one of the greatest comic masterpieces of nineteenth-century literature.

From Wikipedia:
The Good Earth is a novel by Pearl S. Buck published in 1931 and awarded the Pulitzer Prize for the Novel in 1932. The best-selling novel in the United States in both 1931 and 1932, it was an influential factor in Buck's winning the Nobel Prize for Literature in 1938. It is the first book in a trilogy that includes Sons (1932) and A House Divided (1935).
The novel of family life in a Chinese village before World War II has been a steady favorite ever since. In 2004, the book was returned to the bestseller list when chosen by the television host Oprah Winfrey for Oprah's Book Club. The novel helped prepare Americans of the 1930s to consider Chinese as allies in the coming war with Japan.
A Broadway stage adaptation was produced by the Theatre Guild in 1932, written by the father and son playwriting team of Owen and Donald Davis, but it was poorly received by the critics, and ran only 56 performances. However, the 1937 film, The Good Earth, which was based on the stage version, was more successful.

From Wikipedia: "Crime and Punishment focuses on the mental anguish and moral dilemmas of Rodion Romanovich Raskolnikov, an impoverished St. Petersburg student who formulates and executes a plan to kill a hated, unscrupulous pawnbroker for her money, thereby solving his financial problems and at the same time, he argues, ridding the world of evil. Written at fever-heat, Crime and Punishment is considered by many as the first of Dostoevsky's cycle of great novels, which would culminate with his last completed work, The Brothers Karamazov, shortly before his death."

From "Wikipedia":

"Quo Vadis: A Narrative of the Time of Nero", commonly known as "Quo Vadis", is a historical novel written by Henryk Sienkiewicz. Quo vadis is Latin for "Where are you going?" and alludes to a New Testament verse (John 13:36). The verse, in the King James Version, reads as follows,

"Simon Peter said unto him, Lord, whither goest thou? Jesus answered him, Whither I go, thou can not follow me now; but thou shalt follow me afterwards."

Quo Vadis tells of a love that develops between a young Christian woman, Ligia (or Lygia), and Marcus Vinicius, a Roman patrician. It takes place in the city of Rome under the rule of emperor Nero around AD 64.

Sienkiewicz studied the Roman Empire extensively prior to writing the novel, with the aim of getting historical details correct. As such, several historical figures appear in the book. As a whole, the novel carries a powerful pro-Christian message.

Published in installments in three Polish dailies in 1895, it came out in book form in 1896 and has since been translated into more than 50 languages. This novel contributed to Sienkiewicz's Nobel Prize for literature in 1905.

Several movies have been based on Quo Vadis. The most famous movie is the Hollywood production "Quo Vadis" filmed in 1951.

The three laws of Robotics:
1) A robot may not injure a human being or, through inaction, allow a human being to come to harm
2) A robot must obey orders given to it by human beings except where such orders would conflict with the First Law.
3) A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.

With these three, simple directives, Isaac Asimov changed our perception of robots forever when he formulated the laws governing their behavior. In I, Robot, Asimov chronicles the development of the robot through a series of interlinked stories: from its primitive origins in the present to its ultimate perfection in the not-so-distant future—a future in which humanity itself may be rendered obsolete.

Here are stories of robots gone mad, of mind-read robots, and robots with a sense of humor. Of robot politicians, and robots who secretly run the world—all told with the dramatic blend of science fact and science fiction that has become Asmiov's trademark.

Set against the bleak winter landscape of New England, Ethan Frome tells the story of a poor farmer, lonely and downtrodden, his wife Zeena, and her cousin, the enchanting Mattie Silver. In the playing out of this short novel's powerful and engrossing drama, Edith Wharton constructed her least characteristic and most celebrated book. In its unyielding and shocking pessimism, its bleak demonstration of tragic waste, it is a masterpiece of psychological and emotional realism.

(1911 Pulitzer).

From Goodreads: Winner of the 1933 Femina Vie Heureuse Prize, COLD COMFORT FARM is a wickedly funny portrait of British rural life in the 1930s. Flora Poste, a recently orphaned socialite, moves in with her country relatives, the gloomy Starkadders of Cold Comfort Farm, and becomes enmeshed in a web of violent emotions, despair, and scheming, until Flora manages to set things right.

It has a wonderful theme of family and charity, making it a good read for the holiday season.

From Amazon:

Muriel Spark’s timeless classic about a controversial teacher who deeply marks the lives of a select group of students in the years leading up to World War II

“Give me a girl at an impressionable age, and she is mine for life!” So asserts Jean Brodie, a magnetic, dubious, and sometimes comic teacher at the conservative Marcia Blaine School for Girls in Edinburgh. Brodie selects six favorite pupils to mold—and she doesn’t stop with just their intellectual lives. She has a plan for them all, including how they will live, whom they will love, and what sacrifices they will make to uphold her ideals. When the girls reach adulthood and begin to find their own destinies, Jean Brodie’s indelible imprint is a gift to some, and a curse to others.

The Prime of Miss Jean Brodie is Spark’s masterpiece, a novel that offers one of twentieth-century English literature’s most iconic and complex characters—a woman at once admirable and sinister, benevolent and conniving.

This ebook features an illustrated biography of Muriel Spark including rare photos and never-before-seen documents from the author’s archive at the National Library of Scotland.

Also:

"A perfect book." - Chicago Tribune

A short classic novel about an eccentric Edinburgh teacher who inspires cultlike reverence in her young students.

At the staid Marcia Blaine School for Girls, in Edinburgh, Scotland, teacher extraordinaire Miss Jean Brodie is unmistakably, and outspokenly, in her prime. She is passionate in the application of her unorthodox teaching methods, in her attraction to the married art master, Teddy Lloyd, in her affair with the bachelor music master, Gordon Lowther, and—most important—in her dedication to "her girls," the students she selects to be her crème de la crème. Fanatically devoted, each member of the Brodie set—Eunice, Jenny, Mary, Monica, Rose, and Sandy—is "famous for something," and Miss Brodie strives to bring out the best in each one. Determined to instill in them independence, passion, and ambition, Miss Brodie advises her girls, "Safety does not come first. Goodness, Truth, and Beauty come first. Follow me."

And they do. But one of them will betray her.

It is a quasi-biography of Elizabeth Barrett Browning, written from the perspective of her cocker-spaniel! Looking at the world with bewildered eyes, he never quite understands what is happening to him. I am not a fan of dogs, usually, but this story broke my heart. Being a much easier read than some of her other writings, it serves a great introduction to Virginia Woolf. I have only read this in a translation so far, so I’d like to give the original a try.

From Amazon:
Left penniless after his feckless father's death, young Nicholas Nickleby has no choice but to make his own way in the world. For the sake of his mother and sister, he is forced by his hard-hearted uncle to take a post as an assistant master at Dotheboys Hall, a school for unwanted boys, run by the cruel and tyrannical headmaster, Wackford Squeers. But this is only the beginning of Nicholas's adventures in this most entertaining of Charles Dickens's novels. We follow the progress of Nicholas and his slow-witted companion Smike on their travels and encounter a supporting cast of delectable characters including the rambunctious Crummles theatre company and their talented performing pony, the dastardly Sir Mulberry Hawk, the delightful Mrs. Nickleby, the preposterous Kenwings, and many more. Like many of Dickens's novels, Nicholas Nickleby is characterized by his criticism of cruelty and social injustice, but is above all one of the greatest comic masterpieces of nineteenth-century literature.